Government Fires Independent Directors at Development Bank Ghana

In a move that has sparked national debate and drawn the attention of international development partners, the Government of Ghana has dismissed all independent directors serving on the board of the Development Bank Ghana (DBG). The decision follows internal audit findings that alleged serious governance lapses and questionable financial practices within the bank’s operations.

According to sources familiar with the matter, an internal “procure-to-pay” audit raised red flags concerning procurement processes, treasury management, and investment decisions—specifically pointing to an estimated GHS 400 million in financial irregularities. Among the most contentious findings was an alleged investment of GHS 400 million in GCB Bank that reportedly bypassed the full board's approval.

The fallout has been swift. Not only were all independent directors removed, but key executives, including the Chief Financial Officer and Chief Economist, were also dismissed or resigned. Notably, independent directors such as Mr. Yaw Nsarkoh and Ms. Mary Boakye are among those who exited in the wake of the revelations.

However, the leadership of DBG has firmly denied any wrongdoing. In a statement, the bank emphasized that it has undergone multiple clean audits by respected firms including KPMG and PwC, as well as the Bank of Ghana. DBG also highlighted its profitability since inception, posting net profits of GHS 53.6 million in 2021, GHS 77.9 million in 2022, and GHS 80.1 million in 2023, with a further rise projected for 2024.

“The bank remains committed to transparency and fiscal responsibility. We operate under stringent procurement guidelines and have received full compliance ratings from external auditors and development partners,” DBG stated.

Adding another layer to the unfolding drama is the involvement of the World Bank, one of DBG’s key development partners. The World Bank has reportedly commissioned a forensic audit by Deloitte to independently assess the allegations. The findings of that audit have yet to be made public, prompting calls for greater transparency and accountability from both the Ghanaian government and the bank’s international stakeholders.

Civil society groups and financial analysts are now urging the Ministry of Finance and the World Bank to release the Deloitte report, arguing that public trust and investor confidence are at stake.

The government maintains that its actions were necessary to restore integrity to DBG’s governance structure. A reconstitution of the bank’s board is underway, with expectations that the new members will be announced in the coming weeks.

The Development Bank Ghana was established in 2021 with the goal of providing long-term financing to support Ghana’s economic transformation. Its founding was supported by major multilateral institutions including the World Bank, the European Investment Bank, and the German Development Bank (KfW).

As the situation develops, all eyes remain on the outcome of the Deloitte audit and the composition of the new board. The decisions made in the coming weeks will likely shape the future of one of Ghana’s most important financial institutions.